Some thoughts to consider, but think for yourself!

Whether you approved or disapproved of our President Trump as a

the person, but I was in favor of much of what he was getting done on

taxes, regulation, funding the military, China, ISIS, Mideast peace

deals, NATO and taking on China. When compared to what I see coming

from Biden, and his weak and naive retreads, and cabinet of people who

qualify mainly by skin color or gender, I do not have any optimism

that the next four years is going to be other than very bad. We had a

choice of worst or bad. Now that the Dems also control the Senate, we

are in for some very bad policy decisions, and real geopolitical and

economic damage. Biden is clearly just an avatar, and it is unclear

who is really going to be in control of the White House decision

making. It is unclear what happens inside the Republican party now as

it is in tatters. There will be a scramble for leadership as many will

try to position themselves to run for president.

On the other side, we had four years of what we now know was a fake

investigation of Russia collusion, Pelosi ripping up the state of the

union address for all the world to see, an attempt to manufacture

impeachment, and a complete surrender of their sacred obligations by

the press and universities. We have a group of irresponsible left

wingers calling themselves progressives who are determined to try to

overturn capitalism and democracy as we know it. The press and the

left never really chastised the rioters all summer. They often said

they were peaceful protestors even as the picture showed flames.

Unfortunately Biden is not the leader to help fix this mess. We are in

for a continued rough period.

It is a sad commentary on what DC has become. Durham is yet to report

and indict. He is likely to show Hilary was no better than Trump, and

maybe he will even indict her. Biden is just an avatar and we do not

know who will really be in control of policy. I expect Biden will not

make it for more than two or three years. Hunter will possibly get

indicted and the real question is how much bribe money really went to

Joe. I don’t know where we go from here. The level of power corruption

in DC is out of control.

If the Dems get their way on fiscal and regulatory issues, there will

be massive new federal debt issued, and that will cause the dollar to

decline further, and at some point inflation will rise. As they move

to shut down fracking and otherwise regulate fossil fuels, the price

of fossil fuel rises, and that causes inflation, as fuel is used for a

wide range of things in addition to cars. All of that leaves aside the

rise in the minimum wage to $15, which will make many US products

uncompetitive. The range of things the Dems will now do drives up the

cost of living for low income people- the very people the Dems claim

they want to help. It also means less jobs. That leads to even more

subsidies and unemployment spending, and bigger deficits. Hopefully by

2022, blacks will figure out the Dems are the worst thing to happen to

them. As corporate taxes and regulations increase, corporate profits

decrease, and stock prices fall. 401K values fall. As the dollar

drops, prices rise on imported goods. As prices rise, the Fed becomes

pushed to raise rates just as the economy is slowing due to excessive

regulation and higher taxes. Government spending is not the solution.

It is the problem. Biden says the $900 billion is just the start. So

as we come out of the pandemic and the economy is rapidly healing, the

Dems want to spend trillions more. The housing market will slow

considerably as the price of homes has now risen too fast, and as

interest rates start to rise toward 1.5%-2.0% on the ten year as the

year progresses, and all this excess fiscal stimulus becomes a burden

for the bond market. It is clear the Fed is in control of markets for

now. The Fed put is firmly in place.

If you think all of this excess spending is good for the economy,

during the Obama years spending vs GDP was the highest since WWII at

24.4%, vs an average of 18.9% since the end of WWII, yet the economy

flagged, and by late 2016 was slowly headed down. Between 2010-2013

the Fed purchased 55% of all federal debt issued. Despite this massive

spending and monetary stimulus, the economy only grew by 2.1% from

2010-2013 as it came out of the recession. It had been projected by

the Fed to grow in excess of 3.5%. So much for Keynesian multiplier

effects of fiscal spend. The problem was big tax and regulatory

increases. Exactly what we are about to see happen now. Once everyone

realized in 2013 that spending was completely out of control, they

passed sequestration which had the effect of crippling the military to

such an extent it became unable to carry out its missions, and allowed

China to leap toward parity. Biden, Schumer, Pelosi and Yellen will

now push for massive new “stimulus spending”, which, with higher taxes

and regulation, will substitute government spend for private

innovation and investment. Bernie Sanders has gotten what he wanted,

and now he will be chair of budget-imagine that.. We are now headed

for a period where there will need to be more and more deficits to

carry the economy as taxes and regulation reduce private potential

output, innovation and productivity. The Fed will be forced to buy

more and more Federal debt as there is simply not the capacity in the

private nor sovereign markets to accommodate the flood of debt which

is already at 108% of GDP. While there may be a short term boost to

the economy and stocks from all of this fiscal stimulus, it will not

last long as new taxes and regulations kick in. We are in for a

terrible economic mess in a couple of years. Wall St may think all

this spending is good for stocks, but it is a disaster in the making

longer term.

We are now on our way to socialism defined as when the government is

spending excessively and dominating the debt markets, and controlling

private enterprise, and the labor markets with excess regulation and

control of wages through a high minimum wage. The next several years

are going to be very troubling for those who believe unfettered

private enterprise grows economies. Low income workers are going to

find themselves out of jobs and replaced by automation as the $15

minimum wage and pro-union policies kick in. The worst hurt will be

blacks who will see their opportunities for full time jobs go away

despite huge pressures on companies to hire them. Bond investors will

suffer as rates rise, and inflation sprouts. Innovation will once

again be constrained as it was under Obama Biden due to excessive

regulation. Infrastructure projects will again become delayed as new

government environmental regulation goes back to impeding any hope of

getting projects underway quickly, just as we saw under Obama and his

$800 billion of “shovel ready projects”. Look for the next Solyndra.

There will be a shut down of new gas pipelines which will mean

shortages of low cost gas in the Northeast, and so higher energy

prices in that region. In addition, the US will lose its energy

independence, and some real leverage in geopolitics.

Warnock is a far-left radical anti-Semite. He has said you can’t be in

the military and believe in God. Ossoff is a radical left winger. I do

not understand what has happened to GA. Now Stacy Abrams will become

the heroine of the media and of the Dems who will owe her. She is a

very far left person who will become too powerful. Clearly the secy of

state in GA blew it with the consent decree and the ramifications are

huge. Little things can change history.

I expect the stock market to continue up for a while, due to what will

be perceived as massive fiscal and monetary stimulus, the dollar down,

gold and Bitcoin up, and inflation to once again appear. Having cash

will in time be a good thing. Bonds will be big losers as rates rise.

At some point, reality will strike, and it will be ugly. Nothing will

be done to solve the government pensions crisis, and nothing will be

done to help charter schools nor to make real improvement in bad

public schools. Charter schools will suffer as the teachers union will

now have total control. Law and order will suffer as cops will

continue to be vilified and underfunded. China will act up as will

Iran. The world will not be a stable place. It may appear to be for a

while, but underneath, China will become much more of a threat, and

Iran will create more chaos in the Mideast. Israel will be at greater

risk of a war with Iran. The flight from NYC, IL and CA will continue

as taxes rise and as there will not be a full return to offices to

create the revenue for local support businesses, and especially

restaurants.

Now I know I live on another planet after reading the new House rules

on what words are permissible. Here is a question- what do they now

call the Women’s Movement. Is Mother Teresa now Person Teresa. Is a

priest no longer referred to as father. Is Nancy Pelosi no longer a

grandmother and now she is a grandperson. I mean, have they really all

lost their minds. What happens to Title IX. How do they redefine

sexual harassment if there is no sexual definition. University

insanity has now reached Congress. We can expect to see a lot more of

this insanity for the next few years.